9 out of 10 apartments traded in the first half of the year are small to medium-sized, 85㎡ or less

'Paju Munsan Station Dongmun The East' Perspective View

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More than 90% of the apartments traded nationwide in the first half of this year were small to medium-sized apartments with an exclusive area of 85㎡ or less. This figure has increased by about 10 percentage points (p) from 81.58% in 2010, which is interpreted as being influenced by changes in family composition and the sharply rising housing prices.

On the 25th, Real Estate Info, a real estate market analysis firm, analyzed apartment transaction data from the Korea Real Estate Board and found that a total of 652,369 apartments were traded nationwide in the first half of this year, of which 589,248 units, or 90.32%, were apartments with an exclusive area of 85㎡ or less. This means that more than 9 out of 10 apartments traded between January and June were small to medium-sized apartments.

The proportion of small to medium-sized apartment transactions has been on the rise: △81.58% in 2010 △85.95% in 2015 △88.23% in 2020. Real Estate Info explained, "The increase in small to medium-sized apartment transactions is closely related to the rise in the proportion of one- to two-person households."

According to Statistics Korea data, in 2020, one-person households (6,643,354 households) and two-person households (5,864,525 households) accounted for 60.07% of the total 20,926,710 households, exceeding half. This is 22.78 percentage points higher than the 37.29% share of one-person households (4,142,165 households) and two-person households (1,205,052 households) in 2010. In particular, according to Statistics Korea's "Special Household Projection 2017?2047," the proportion of households with two or fewer persons is expected to increase to 72.3% (16,121,000 households) by 2047.

The rate of housing price increase is also higher for small to medium-sized apartments.

According to Real Estate 114 data, over the past 10 years (August 1, 2012, to July 31, 2021), apartment prices nationwide increased the most for apartments with an exclusive area of 60㎡ or less, rising by 110.48%. This was followed by apartments with an exclusive area of 60?85㎡, which rose by 97.56%, and apartments over 85㎡, which increased by 77.01%.

In particular, in Seoul, the housing price increase rates were 163.12% for apartments 60㎡ or less, 131.49% for 60?85㎡, and 91.89% for over 85㎡. In Gyeonggi-do as well, prices rose significantly in the order of 60㎡ or less (107.28%), 60?85㎡ (89.62%), and over 85㎡ (62.31%).

Recently, construction companies preparing for pre-sale have also increased the proportion of small to medium-sized apartments. Next month, GS Construction will pre-sell "Icheon Xi The Park" in Gwango-dong, Icheon-si, Gyeonggi-do, where 605 out of a total of 706 households are composed of units with an exclusive area of 84㎡ or less.

Dongmoon Construction's two sites scheduled for pre-sale in September in Paju and Pyeongtaek, Gyeonggi-do, are all composed of units with an exclusive area of 84㎡ or less. "Paju Munsan Station Dongmoon The East," located in 878-1 Seonyu-ri, Munsan-eup, Paju-si, is a large complex with a total of 1,503 households ranging from 59 to 84㎡ in exclusive area.

"Yeoju Station Centreville Triniche," located in 299-7 Gyodong, Yeoju-si, is also entirely composed of small to medium-sized units. This apartment, which Dongbu Construction will pre-sell next month, has a total of 404 households, of which 175 units are for general sale, including 62 units of 66㎡ and 113 units of 76㎡.

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